Colonial Life has made enhancements to its whole life insurance plan that allows employees to purchase a greater amount of coverage and makes it easier for them to qualify for the coverage.
According to a release, new interest rate regulations require many insurance companies to increase the cash value of their whole life policies in 2014. Colonial Life increased the cash value of its plan to comply with these regulations, but also made additional changes. The company's revised Whole Life 1000 insurance plan allows employees to now purchase up to $300,000 in coverage. Employers with 50 or more employees can also offer this plan to their workers without answering any health questions, making it easier for more people to qualify for coverage. In addition, the product offers the traditional benefits of whole life insurance such as guaranteed level premiums, guaranteed cash value and a guaranteed death benefit.
"Whole life insurance is an important part of employee benefits plans for today's workers and their families," says Steven Johnson, assistant vice president, product development, at Colonial Life. "Whole life insurance, which features guaranteed stable premiums and builds cash value, does more than just cover final expenses. It can be used to provide for a family's loss of income, mortgage costs and educational needs."
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